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Calamba Steel Center Inc. v.

GR 151857, 457 SCRA 482
April 28, 2005

Petitioner is a domestic corporation engaged in the manufacture of steel blanks for use bymanufacturers
of automotive, electrical, electronics in industrial and household appliances. In it's amended Corporate
Annual Income Tax Return on June 4, 1996 it declared a net taxable income of P9,461,597.00, tax credits
of P6,471,246.00 and tax due in the amount of P3,311,559.00. It
also reported uarterly payments for the second and third quarters of 1995 in the amounts of
P2,328,747.26 and P1,082,108.00, respectively. It is the contention of the petitioner in this case filed in
1997, that it is entitled to a refund. The refund was purportedly due to income taxes witheld from it, and
remitted in its behalf, by the witholding agents. Such witheld tax, as per petitioners 1997 return, were not
utilised in 1996 since due to its income/loss positions for the three quarters of 1996.

Whether or not a tax refund may be claimed even beyong the taxable year following that in which the tax
credit arises.

Yes, however; it is still incumbent upon the claimant to prove that it is entitled to such refund. Tax
refunds being in the nature of tax exemptions such must be construed strictissimi juris against the
taypayer-claimant. Under the NIRC, the only limitation as regards the claiming of tax refunds is that such
must be made within two years. The claim for refund made by Calamba steel was well within the 2 year
period.As regards the procedure taken by counsel of Calamba Steel in submitting thefinal adjustment
returns (1996) after trial has been conducted, the Court said that although the ordinary rules of
procedure from upon this jurisprudence mandates that the proceedings before the tax court's shall not be
governed bystrictly technical rules of evidence. Moreoover, as regards evidence, the court further said that
Judicial notice could have been taken by the cA and theCTA of the 1996 final adjustment return made by
petitioner in another case then pending with the CTA.